In October 2009, he stepped down as abbot citing health issues. Days later, Zen Mountain Monastery announced that his death was imminent.[3] On October 9, 2009, at 7:30 a.m. he died of lung cancer in Mount Tremper, New York.[1]

Loori founded Dharma Communications as a way to communicate the dharma of the Mountains and Rivers Order. Dharma Communications publishes a Buddhist quarterly titled the Mountain Record, various audio-visual materials, and has also published several books by Daido Loori.[2] According to Charles S. Prebish, Dharma Communications is "one of the most efficient and successful publishers of Buddhist materials on the continent, and a place where practitioners can learn how to cultivate both mindfulness and compassion in front of a computer."[6]